NEW ORLEANS--(Business Wire)--
Former Attorney General of Louisiana, Charles Foti, Esq. and the law firm of
Kahn Swick & Foti, LLC announces that it has commenced an investigation into
STEC, Inc ("STEC" or the "Company") (Nasdaq: STEC) to determine whether it has
violated federal securities laws by issuing false and misleading statements to
its shareholders between the dates of 6/16/09 to 11/3/09.
On November 3, 2009, shares of STEC lost over thirty percent of their value
after the company lowered its 2009 guidance below Wall Street's outlook, citing
inventory surpluses at one of its largest customers, EMC (NYSE: EMC). STEC,
which designs, develops, manufactures, and markets solid-state computer memory
drive products, including the ZeusIOPS solid state drives, warned that EMC is
carrying an inventory glut, suggesting that demand for STEC's solid state drives
could be weaker than expected. While analysts expected some inventory build by
the first quarter of 2010, the glut of inventory in the third quarter of 2009
came as a complete surprise to analysts and investors.
KSF is investigating whether the immediate decline in the price of STEC shares
has been driven by the fact that as recently as August 3, 2009, STEC`s corporate
insiders, including Manouch Moshayedi, the Company`s Chief Executive Officer and
Chairman of the Board, and his son, Mark Moshayedi, its President, Chief
Operating Officer, Chief Technical Officer and Secretary, sold off as many as
10.35 million shares of their privately held STEC shares in a registered
Secondary Offering, to realize gross proceeds of approximately $320,850,000.00,
prior to any disclosure regarding the severe inventory build up at EMC.
According to media reports, EMC is responsible for as much as 90% of the
Company`s Zeus solid state hard drive sales.
If you have information that would assist KSF in its investigation, or would
like to discuss your legal rights, you may e-mail or call KSF, without
obligation or cost to you. You may contact Managing Partner Lewis Kahn of KSF
direct, toll free 1-866-467-1400, ext. 100, or by email at
lewis.kahn@ksfcounsel.com. KSF focuses its practice on securities fraud
litigation, and the firm's lawyers have significant experience working on
securities fraud cases that have resulted in significant recoveries for
shareholders. For more information on KSF, please visit www.ksfcounsel.com.
Kahn Swick & Foti, LLC
Lewis Kahn, 866-467-1400,ext.100
Lewis.kahn@ksfcounsel.com
Copyright Business Wire 2009
